HMA looks to Citrus, vying for Inverness hospital

Published: Thursday, July 25, 2013 at 11:19 a.m.

Last Modified: Thursday, July 25, 2013 at 12:32 p.m.

Health Management Associates (HMA), the company poised to lease Munroe Regional Medical Center later this year, also has its eye on a hospital to the south.

HMA is one of the finalists to buy or lease Citrus Memorial Hospital in Inverness. HMA specifically is looking to form a joint venture of sorts.

Like Munroe, Citrus Memorial is a publicly owned hospital that seeks a strong corporate partner to help navigate the choppy financial future.

For Munroe, HMA (and its partner in the deal, UF Health Shands Hospital in Gainesville) beat out a partnership between Duke and LifePoint.

For Citrus Memorial, HMA is competing against Hospital Corporation of America and Regional Care Hospital Partners.

There is an added hurdle in the Citrus County process: anti-trust concerns. HMA already owns the other hospital in Citrus, Seven Rivers Regional Medical Center in Crystal River.

On Wednesday, the Citrus County Hospital Board's trustees heard a report from anti-trust attorney Arthur Lerner. It also has entered into contract negotiations with a transaction attorney, according to a news release from the trustees.

Citrus Memorial is having financial struggles. And Medicare, which accounts for more than 70 percent of hospital revenue, is cutting payments to hospitals.

The result: “The hospital is unable to invest in the latest technology, equipment, and facility upgrades, which limits its ability to compete with other hospitals in the region,” the trustees said on a website they established called www.careforcitruscounty.org.

One of the Citrus trustees, Krista Joseph, said her board is aware of HMA's dealings with Munroe.

Those trustees hope to select a finalist within a month or so.

“That's the best thing for the hospital — the sooner, the better,” Joseph said during a telephone interview.

HMA has been in the national business news lately. An activist investor group is trying to install a new HMA board, and the company has been mentioned as a possible takeover target.

Earlier this week, CNBC reported that HCA likely will not make a bid for HMA.

Contact Jim Ross at jim.ross@ocala.com or 671-6412. Follow him on Twitter @jimross96.

<p>Health Management Associates (HMA), the company poised to lease Munroe Regional Medical Center later this year, also has its eye on a hospital to the south.</p><p>HMA is one of the finalists to buy or lease Citrus Memorial Hospital in Inverness. HMA specifically is looking to form a joint venture of sorts.</p><p>Like Munroe, Citrus Memorial is a publicly owned hospital that seeks a strong corporate partner to help navigate the choppy financial future.</p><p>For Munroe, HMA (and its partner in the deal, UF Health Shands Hospital in Gainesville) beat out a partnership between Duke and LifePoint.</p><p>For Citrus Memorial, HMA is competing against Hospital Corporation of America and Regional Care Hospital Partners.</p><p>There is an added hurdle in the Citrus County process: anti-trust concerns. HMA already owns the other hospital in Citrus, Seven Rivers Regional Medical Center in Crystal River.</p><p>On Wednesday, the Citrus County Hospital Board's trustees heard a report from anti-trust attorney Arthur Lerner. It also has entered into contract negotiations with a transaction attorney, according to a news release from the trustees.</p><p>Citrus Memorial is having financial struggles. And Medicare, which accounts for more than 70 percent of hospital revenue, is cutting payments to hospitals.</p><p>The result: “The hospital is unable to invest in the latest technology, equipment, and facility upgrades, which limits its ability to compete with other hospitals in the region,” the trustees said on a website they established called www.careforcitruscounty.org.</p><p>One of the Citrus trustees, Krista Joseph, said her board is aware of HMA's dealings with Munroe.</p><p>Those trustees hope to select a finalist within a month or so.</p><p>“That's the best thing for the hospital — the sooner, the better,” Joseph said during a telephone interview.</p><p>HMA has been in the national business news lately. An activist investor group is trying to install a new HMA board, and the company has been mentioned as a possible takeover target.</p><p>Earlier this week, CNBC reported that HCA likely will not make a bid for HMA.</p><p><i>Contact Jim Ross at jim.ross@ocala.com or 671-6412. Follow him on Twitter @jimross96.</i></p>